Director of Brand Marketing Fashion Ecommerce

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A franchisee is no less than an entrepreneur, however, the model they work for is very different from building their own venture. In franchise or dealership model yous have to maintain the goodwill of the make along with creating performance standards in terms of quality of products. THARUN RAO, Manager, Hyderabad-based Quality Group, is taking seven major brands to multiple locations with his company. In four years, the company's turnover is Rs 60 crore per annum and by 2020, Rao is expecting to reach a target of Rs 120 crore per annum turnover.

How unique is the working model for Quality Grouping?

Quality Group is mostly into dealership and franchise business organisation and information technology is associated with the brands like Royal Enfield, Renault India and textile groups similar Raymonds and Arvind. I get associated with the brands which are doing the best work in the industry and try to launch them in multiple locations.

How the franchise or dealership model is dissimilar from creating your own brand?

This model of piece of work is completely different from entrepreneurship. My work involves associating with the brands which are already established. Every bit a franchise partners, we take these brands to the market place where they don't exist.

Every business organisation model has its own disadvantages, how would y'all describe yours?

When companies manus over its dealership, they expect a lot from you. However, when you are getting associated with a brand y'all can't take a call on your ain equally you lot are non the manufacturer. You lot can't take a decision on what the manufacturers are producing. You only take these products to the market. I feel these are the few major challenge in this business model. Secondly, we cannot go to the venture capitalists for funds and the brands we are getting associated with do not encourage the aforementioned. At the aforementioned time, money is i of the main requisite to start a business organisation. Hence, we have to raise funds from friends and family.

What were the initial challenges you faced before starting this venture?

I was 20 years old when I started this business without any idea about running a business or the manufacture. Then starting early is always tough. Nevertheless, with immense support from my father I easily sailed through that stage. From the finance perspective, banks will not trust you during the initial years, then you demand to prove them something. Somehow, I was able to make them believe.

What entrepreneurs need to keep in heed earlier entering the dealership business?

All entrepreneurs getting into dealership concern demand to have some passion for the brand which they are getting associated with. They should not look at this model as a turn a profit making thing and instead should have some understanding of the brand. Moreover, several applicants would apply for dealership of the same brand, then become gear up to face series of interviews with the make. They will be judging you on your passion, commitment and interest into the concern. Then prove them with conviction.

(This commodity was get-go published in the August issue of Entrepreneur Magazine. To subscribe, click here)